A GENDERED ANALYSIS OF THE EFFECT OF FINANCIAL INCLUSION ON HOUSEHOLD WELFARE IN NIGERIA

ABSTRACT The study examined the impact of financial inclusion on household welfare in Nigeria using the 2018/2019 General Household Survey (GHS) dataset. The study employed the binary logistic regression approach to ascertain the impact offinancial inclusion on householdwelfare in Nigeria as well as account for gender differential impact of financial inclusion on household welfare in Nigeria. The study used four financial inclusion variables, namely, ownership of a bank account, ownership of formal savings, ownership of an insurance plan, and ownership of an informal savings account. The dependent variable used was the household's total consumption expenditure of all goods and services. The study's findings revealed that all the financial inclusion variables except informal savings significantly increase the likelihood ofhaving a high level of consumption. The study further revealed that the financial inclusion variables, except informal savings, increase the odds of having a high level of consumption in maleheaded households. No financial inclusion variable was significant for female-headed households, but they had a positive impact on the level of household total consumption. However, education, one of the control variables, was very significant and positive for female-headed households. Based on the study's findings, the government should focus more on financial literacy programs to educate individuals, especially women, on the advantages of using financial services. Additionally, obstacles to financial inclusion, such as unnecessary financial transaction fees, the lack of formal financial institutions in rural areas, and regulatory barriers, should be eliminated to encourage low-income individuals and people living in rural communities to become financially included. The study also recommends investigating the root causes of the lack of financial inclusion's importance in female-headed households. Finally, the creation of economic empowerment programs and financial products for women should be expanded.